PANAMA CITY, April 17, 2019 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX,
"Bladex", or "the Bank"), a Panama-based multinational bank originally
established by the central banks of 23 Latin-American and
Caribbean countries to promote
foreign trade and economic integration in the region, today
announced its results for the first quarter ("1Q19") ended
March 31, 2019.
The consolidated financial information in this document has been
prepared in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB").
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FINANCIAL
SNAPSHOT
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(US$ million, except
percentages and per share amounts)
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1Q19
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4Q18
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1Q18
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Key Income
Statement Highlights
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Net Interest Income
("NII")
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$28.0
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$28.0
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$26.6
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Fees and commissions,
net
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$2.4
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$5.4
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$3.1
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Total
revenues
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$32.1
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$34.1
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$30.7
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(Impairment loss)
recovery on financial instruments
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($0.9)
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$1.3
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($1.9)
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Impairment loss on
non-financial assets
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$0.0
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($2.3)
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$0.0
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Operating
expenses
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($9.9)
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($12.4)
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($14.3)
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Profit for the
period
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$21.2
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$20.7
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$14.5
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Profitability
Ratios
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Earnings per Share
("EPS") (1)
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$0.54
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$0.52
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$0.37
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Return on Average
Equity ("ROAE")(2)
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8.6%
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8.3%
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5.6%
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Return on Average
Assets ("ROAA")
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1.31%
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1.20%
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0.91%
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Net Interest Margin
("NIM")(3)
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1.74%
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1.61%
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1.68%
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Net Interest Spread
("NIS")(4)
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1.16%
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1.08%
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1.26%
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Efficiency
Ratio(5)
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30.8%
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36.3%
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46.6%
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Assets, Capital,
Liquidity & Credit Quality
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Commercial
Portfolio(6)
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$6,006
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$6,290
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$5,731
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Investment
Portfolio
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$90
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$107
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$85
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Total
assets
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$6,450
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$7,609
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$5,875
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Total
equity
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$997
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$994
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$1,047
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Market
capitalization(7)
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$788
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$684
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$1,127
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Tier 1 Basel III
Capital Ratio (8)
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20.1%
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18.1%
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22.6%
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Total assets / Total
equity (times)
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6.5
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7.7
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5.6
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Liquid Assets / Total
Assets (9)
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11.9%
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22.4%
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9.3%
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Credit-impaired loans
to Loan Portfolio(10)
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1.18%
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1.12%
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1.12%
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Total allowance for
losses to Commercial Portfolio(11)
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1.75%
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1.65%
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1.57%
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Total allowance for
losses to credit-impaired loans (times)(11)
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1.6
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1.6
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1.5
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1Q19 Highlights
- Bladex reported Profits of $21.2
million for the 1Q19, a 47% YoY increase, reflecting
improved total revenues (+4% YoY), a 31% reduction in operating
expenses and lower provisions for credit losses.
- The Bank's quarterly Profits were up from $20.7 million in 4Q18, a 2% QoQ improvement, on
the absence of impairment losses on non-financial assets and lower
operating expenses (-20% QoQ).
- Net Interest Income ("NII") increased to $28.0 million (+5% YoY; relatively stable QoQ)
and Margins ("NIM") of 1.74% (+6bps YoY; +13bps QoQ), on an
improvement in net lending spreads and lesser low-yielding
liquidity balances QoQ.
- Fees and Commissions income totaled $2.4 million in 1Q19 (-23% YoY; -56% QoQ).
The decrease in fees and commissions reflects a seasonally
slower first quarter of the year, and the uneven nature of the loan
syndication business.
- Quarterly operating expenses were $9.9 million, a decrease of 31% YoY (1Q18
expenses were impacted by non-recurring charges). Expenses
were 20% lower QoQ, benefitting from a first quarter seasonal
effect. The Bank's Efficiency Ratio improved to 30.8% in
1Q19, compared to 46.6% in 1Q18 and to 36.3% in 4Q18.
- 1Q19 annualized Return on Average Equity ("ROAE") reached 8.6%,
compared to 5.6% in 1Q18 and 8.3% in 4Q18. Both annual and
quarterly increases were driven by higher profits, while the Bank's
capitalization remained solid with a Tier 1 Basel III Capital Ratio
at 20.1%.
- End-of-period Commercial Portfolio balance of $6.0 billion in 1Q19 represented a 5%
increase YoY, and a 5% reduction QoQ from a seasonally low business
quarter. The portfolio's 1Q19 average balance was
$6.1 billion (+1% YoY, -2% QoQ).
- Credit-Impaired Loans, also referred to as Non-Performing
Loans, remained stable QoQ at $64.7
million, or 1.18% of total Loan Portfolio balances at the
end of 1Q19. This compares to $58.8
million, or 1.12%, at the end of 1Q18.
- Allowance for credit losses on the Commercial Portfolio totaled
$105.0 million, or 1.75% of the
portfolio, representing a reserve coverage of 1.6 times
credit-impaired loan balances.
CEO'S Comments
Mr. N. Gabriel Tolchinsky,
Bladex's Chief Executive Officer, said, "The prospect of
diminishing trade volumes and other impacts from continuing trade
tension, the weight of lower growth rates from developed markets
combined with a more challenging political and economic environment
in key Latin American countries, results in a macroeconomic context
that offers no room for complacency.
Against this backdrop we analyze the risk/reward function at
the country level and see a dynamic picture of how our portfolio
construction is evolving. With more than 75% of our portfolio
maturing in less than one year, Bladex is in a privileged position
to dynamically adjust portfolio exposures.
We were pleased with Panama's upgrade from a major credit rating
agency, not only because Panama is
our home, but also because it is an important exposure in our
portfolio that we intend to increase. We also see growth
opportunities in the rest of Central
America and the Caribbean,
Colombia, Peru and Chile.
The first quarter of the year is a seasonally slow one for
Latin America. Nevertheless, our book of business is solid.
We are identifying new prospects, increasing share of wallet
with our existing client base and structuring value-added
transactions with key clients.
Although our focus on high quality borrowers and prescient US
dollar liquidity in key markets puts pressure on our origination
margins, Bladex continues to originate medium term loans at higher
lending spreads than those of maturating loans, thereby improving
overall margins for our portfolio.
On the cost side, expenses for the quarter benefitted
somewhat from the seasonality effect. That said, we reiterate
our statement from the last call that net of restructuring and
other non-recurring charges, our recurrent expenses continue to
decline.
Against this backdrop, the management of Bladex - as well as
its Board of Directors - is cautiously optimistic for the remainder
of 2019 and look for a continuation on the profitability path from
last quarter."
RECENT EVENTS
- Quarterly dividend payment: The Bank's Board of
Directors approved a quarterly common dividend of $0.385 per share corresponding to the first
quarter 2019. The dividend will be paid on May 15, 2019, to stockholders registered as of
April 29, 2019.
- Ratings updates: On April
3, 2019, S&P Global Ratings affirmed the Bank's global-
and national-scale issuer credit ratings at "BBB/A-2" and "mxAAA",
respectively. The outlook was revised to "Negative" from
"Stable" on shifting economic risk exposures in Latin America countries.
Notes:
- Numbers and percentages set
forth in this earnings release have been rounded and accordingly
may not total exactly.
- QoQ and YoY refer to
quarter-on-quarter and year-on-year variations,
respectively.
Footnotes:
- Earnings per Share ("EPS") calculation is based on the average
number of shares outstanding during each period.
- ROAE refers to return on average stockholders' equity which is
calculated on the basis of unaudited daily average balances.
- NIM refers to net interest margin which constitutes to net
interest income divided by the average balance of interest-earning
assets.
- NIS refers to net interest spread which constitutes the average
yield earned on interest-earning assets, less the average yield
paid on interest-bearing liabilities.
- Efficiency Ratio refers to consolidated operating expenses as a
percentage of total revenues.
- The Bank's "Commercial Portfolio" includes gross loans (or the
"Loan Portfolio"), loan commitments and financial guarantee
contracts, such as issued and confirmed letters of credit, stand-by
letters of credit, guarantees covering commercial risk and other
assets consisting of customers' liabilities under acceptances.
- Market capitalization corresponds to total outstanding common
shares multiplied by market close price at the end of each
corresponding period.
- Tier 1 Capital is calculated according to Basel III capital
adequacy guidelines, and is equivalent to stockholders' equity
excluding certain effects such as the OCI effect of the financial
instruments at fair value through OCI. Tier 1 Capital ratio
is calculated as a percentage of risk-weighted assets.
Risk-weighted assets are estimated based on Basel III capital
adequacy guidelines.
- Liquid assets refer to total cash and cash equivalents,
consisting of cash and due from banks, and interest-bearing
deposits in banks, excluding pledged deposits and margin
calls. Liquidity ratio refers to liquid assets as a
percentage of total assets.
- Credit-impaired loans are also commonly referred to as
Non-Performing Loans or NPLs. Loan Portfolio refers to gross
loans, excluding interest receivable, the allowance for loan
losses, and unearned interest and deferred fees.
- Total allowance for losses refers to allowance for loan losses
plus allowance for loan commitments and financial guarantee
contract losses.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements of
expected future developments within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements in this press release include the growth of the credit
portfolio, including the trade portfolio, the increase in the
number of the Bank's corporate clients, the trend of lending
spreads, changes in activities engaged in by the Bank that are
derived from the Bank's client base, anticipated operating results
and return on equity in future periods, including income derived
from the Treasury Business Segment, and changes in the
financial and performance strength of the Bank. These
forward-looking statements reflect the expectations of the Bank's
management and are based on currently available data; however,
actual performance and results are subject to future events and
uncertainties, which could materially impact the Bank's
expectations. Among the factors that can cause actual
performance and results to differ materially are as follows: the
anticipated changes in the Bank's credit portfolio; the
continuation of the Bank's preferred creditor status; the impact of
increasing/decreasing interest rates and of the macroeconomic
environment in the Region on the Bank's financial condition; the
execution of the Bank's strategies and initiatives, including its
revenue diversification strategy; the adequacy of the Bank's
allowance for expected credit losses; the need for additional
allowance for expected credit losses; the Bank's ability to achieve
future growth, to reduce its liquidity levels and increase its
leverage; the Bank's ability to maintain its investment-grade
credit ratings; the availability and mix of future sources of
funding for the Bank's lending operations; potential trading
losses; the possibility of fraud; and the adequacy of the Bank's
sources of liquidity to replace deposit withdrawals. Factors or
events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
ABOUT BLADEX
Bladex, a multinational bank originally established by the
central banks of Latin-American and Caribbean countries, began operations in 1979
to promote foreign trade and economic integration in the Region.
The Bank, headquartered in Panama,
also has offices in Argentina,
Brazil, Colombia, Mexico, Peru,
and the United States of America,
supporting the regional expansion and servicing its customer base,
which includes financial institutions and corporations.
Bladex is listed on the NYSE in the
United States of America (NYSE: BLX), since 1992, and its
shareholders include: central banks and state-owned banks and
entities representing 23 Latin American countries; commercial banks
and financial institutions; and institutional and retail investors
through its public listing.
CONFERENCE CALL INFORMATION
There will be a conference call to discuss the Bank's quarterly
results on Wednesday, April 17, 2019
at 9:00 a.m. New York City time (Eastern Standard
Time). For those interested in participating, please dial
(800) 311-9401 in the United
States or, if outside the United
States, (334) 323-7224. Participants should use
conference ID# 8034, and dial in five minutes before the call is
set to begin. There will also be a live audio webcast of the
conference at http://www.bladex.com. The webcast presentation
will be available for viewing and downloads on
http://www.bladex.com.
The conference call will become available for review on
Conference Replay one hour after its conclusion, and will remain
available for 60 days. Please dial (877) 919-4059 or (334)
323-0140, and follow the instructions. The replay passcode
is: 33287579.
For more information, please access http://www.bladex.com or
contact:
Mrs. Ana Graciela de Méndez
Chief Financial Officer
Tel: +507 210-8563
E-mail address: amendez@bladex.com
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SOURCE Banco Latinoamericano de Comercio Exterior, S.A.
(Bladex)